I read a stat recently that stated 71% of small businesses depend heavily on a few individual owners and/or employees. This number makes quite a bit of sense, once you consider the limited resources most small businesses have to work with. It also presents a great deal of risk. Losing a key employee, manager, or professional could easily be the death knell for businesses without much bench strength.
To protect themselves, their families, and their businesses from this possibility, many business owners use life insurance. As you probably know, life insurance comes in many shapes, sizes, and forms. Depending on your business and objectives, there is probably a way to minimize the risk of your or your colleagues’ premature death using life insurance.
There is a lot to write about on this topic – in part because there is such a wide variety of life insurance products available. This post will review 8 considerations when protecting your business with life insurance. If you’re dipping your toe into the subject for the first time, this is a good place to start.